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EBRD, ACWA Power sign $114 m deal on largest private sector solar power plant in Egypt
The European Bank for Reconstruction and Development (EBRD) signed an agreement with ACWA Power worth $114 million to inaugurate the largest private sector solar power plant in Egypt in Kom Ombo.
The agreement, worth $114 million, includes the EBRD, the OPEC Fund for International Development, the African Development Bank (AfDB), the Green Climate Fund (GCF) and Arab Bank.
The development of the new Kom Ombo plant will add 200 MW of energy capacity, and is located 20 km away from the Benban solar power plant, Egypt’s flagship solar park.
The new project will increase Egypt’s renewable energy mix and promote private-public cooperation in heavy industries.
The agreement comprises $36 million from the EBRD, $18 million from the OPEC Fund, $17.8 million from the AfDB, $23.8 million from the GCF and $18 million from Arab Bank. This is in addition to equity bridge loans of up to $14 million from EBRD and $33.5 million from Arab Petroleum Investments Corporation (APICORP).
Egyptian Minister of International Cooperation Rania Mashat – who witnessed the inking ceremony – explained that the Government of Egypt is adamant on including the private sector in the transition to a green economy as a way to recover and rebuild.
The Ministry of International Cooperation is working to mobilize efforts through international partnerships to provide more green financing tools for the private sector to participate in development efforts.
This would be a continuation to what the Benban Solar Park has begun; the public-private partnerships in heavy industries pushing towards sustainable development in order to achieve Egypt’s 2030 Vision.
Mashat added that the Ministry of International Cooperation is working to coordinate with relevant authorities and to consolidate international partnerships aimed at strengthening Egypt’s position as a leading regional model in the transition towards a green economy.
The country’s efforts in this context are in line with the EBRD’s 2021/2025 strategy; of which the first pillar focuses on supporting the transition to a green economy and promoting environmental sustainability.
“We are happy to team up again with ACWA Power in Egypt, after our successful partnership in Benban, to promote renewable energy in Egypt. Increasing the production of clean energy is an important step to reducing carbon emissions and addressing climate change. This is in line with the EBRD’s strategy to become a majority green bank by 2025. This project also marks the EBRD’s first co-financing project with the AfDB and the OPEC Fund in Egypt and we look forward to future joint investment opportunities for our institutions across Africa,” said President of EBRD Odile Renaud-Basso.
Authorities at the Ministry of Electricity and Renewable Energy, expressed his gratitude at the signing of the agreement between ACWA Power, the EBRD, and other international partnerships.
Dr. Ahmed Mahina, First Undersecretary of State for Research, Planning and Follow-up Authorities at the Ministry of Electricity and Renewable Energy, expressed his gratitude at the signing of the agreement between ACWA Power, the EBRD, and other international partnerships. He explained that such projects advance Egypt’s regional position in promoting the transition towards a green economy and clean energy.
He also added that the private sector plays a pivotal role in the development plans and in the state’s plans to increase the percentage of clean energy being used.
Paddy Padmanathan, President and Chief Executive Officer of ACWA Power, said that, “ACWA Power is proud to lead the implementation of the Kom Ombo PV project. The financing package signed today brings us closer to not only the people and the Government of Egypt, but also to our finance partners, the EBRD, AfDB, the OPEC Fund, the GCF and Arab Bank. This reflects our shared objective of supporting the energy transition to address the threat of climate change. The Kom Ombo PV is the fourth project in ACWA Power’s Egyptian portfolio, and the conclusion of this financing demonstrates the confidence in the Egyptian government’s ambitious renewable energy plans, being implemented through private-sector participation.”
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